Developers able to form proactive relationships with local councils are increasingly gaining a competitive advantage in delivering new hotels, a new report has found.
According to Tony O’Brien, UK development director, Travelodge, being in tune with local authority goals is often key to unlocking opportunities. “Hotel development tends to align with their stated policies of increasing visitor numbers to their area. It helps the nighttime economy and can support objectives around getting premium, brownfield sites back into economic use,” he notes.
Urban regeneration
Councils focused on urban regeneration, meanwhile, are often open to proposals to convert obsolete assets, such as industrial and office properties, into standalone hospitality assets or mixed-use schemes. Some of the earliest Travelodge hotels in city centres in fact were conversions from vacant offices, including properties in Aberdeen, Birmingham and Manchester. “Today, there is also more consideration of the environmental aspect, with the embodied carbon of a standing structure representing a more sustainable way of creating a new hotel,” O’Brien adds.
Firms like Dominus, an investor-developer with a focus on hotels and student housing, have also found other ways to align with local policy. The City of London Corporation is welcoming increasing numbers of hospitality projects as part of its Destination City strategy, which aims to position the Square Mile as a world-leading business and leisure location. Dominus, accordingly, has recently seen a proposal for an office-to-hotel conversion in the City get the greenlight. The Derby London City will be flagged a Curio Collection by Hilton, and have 237 keys, including 10 suites.
Says Preet Ahluwalia, Dominus CEO: “Since we acquired the site on Great Tower Street in 2023, we’ve taken a sustainable design approach to refurbishing and upgrading the existing building, to create a hotel that pays tribute to the past and offers an exceptional guest experience in the heart of London. The Derby is an excellent addition to our growing hotel portfolio, and we look forward to welcoming guests in early 2026.”
Jay Ahluwalia, principal director at Dominus, notes that while each planning application is judged on its own merit, bringing forward hotel projects in the City of London has certain advantages over other boroughs. A retrofit-first approach, for example, can help speed up the planning process. Nevertheless, in every location, it is important to consider the needs of the neighbourhood. “Hotels have the benefit of being a public environment, with ground-floor amenities often serving the wider district,” he says.
He cites another successful conversion executed by Dominus, Dixon at Tower Bridge, housed in a former magistrates’ court. “Here the previous use-case inspired the project, with a bar in the downstairs courtroom, and a meeting space created in a court on the upper floors,” he explains.
Regeneration specialists
A number of developers that have successfully positioned themselves as regeneration specialists with broader sector expertise are also reaping the rewards of council partnerships. Muse Places is one such firm, with an impressive track record across a number of UK cities in driving urban renewal.
Wakefield Council has recently contracted Muse to deliver a new hotel, enhanced city square, several new city centre housing developments, and a new museum and library in the first phase of a city regeneration scheme.
“We have an exciting and ambitious masterplan that lays out the vision for the future of our city centre,” explains councillor Michael Graham, cabinet member for regeneration and economic growth.
Muse is expected to take charge of co-ordinating contractors and the companies necessary to deliver a large-scale project, as it has done on similar schemes in Birmingham, London, Leeds and Manchester.
“Wakefield has an exciting future, with an ambitious and forward-thinking Council. By working in partnership, we can deliver positive and quality placemaking and regeneration which delivers real benefit to the community,” says Simon Dew, development director at Muse.
Muse also successfully recently partnered with Blackpool Council, after the authority decided to fund the delivery of a Holiday Inn as part of its Talbot Gateway regeneration project.
Meanwhile another regeneration specialist, CityHeart, has recently inked a deal with West Northamptonshire Council (WNC) to breathe new life into Northampton’s Four Waterside and Marefair sites. The scheme represents one of the largest developments of its kind in the county, covering a total of five acres at the entrance of the town.
Including offices, residential and a new hotel, the project has been supported by a £1.5 million grant from The Towns Fund and a further £7 million from the Northampton Waterside Enterprise Zone, as part of total funds of £24.9 million secured by WNC to improve the town centre.
Professional channels
Finally, developers that use the right professional channels can also access opportunities being proposed by councils. Hospitality company Whitbread recently acquired a long-vacant site in Carlise after Cumberland Council worked with CBRE to find a partner for the plot. Formerly home to a hotel which had been demolished, the site plan will now see Whitbread construct a hotel on the site, subject to planning permission, which it will own and operate on completion in 2028. “We’re excited to bring Premier Inn to the heart of Carlisle, providing high-quality, affordable hotel accommodation in a prime and accessible location,” says Whitbread acquisition manager, Jill Anderson. “This development underscores our commitment to expanding Premier Inn across the north of England, supporting local economies, and creating lasting employment opportunities.”
In Blackpool, C1 Capital and Mottram Estates were able to secure planning permission last year for a 226-bed, dual branded aparthotel next to the town’s recently completed Winter Gardens conference centre, after responding to a zoning initiative by local authorities.
Blackpool Council has created designated “holiday areas” in the town where new hotels can be built, helping separate the sites from those earmarked for much-needed residential development. C1 and Mottram plan to deliver 158 hotel rooms operated under one brand and 86 self-contained studios and 22 self-contained one-bed apartments under another flag.